Developments on the Chinese automotive market could change the business in the race to the crown for German premium brands. With extraordinary growth rates, car manufacturers prioritized Asian market development. More concrete, a quickly evolving segment of young, wealthy Chinese customers demanding German luxury cars seems to be a chance to compensate maturing home markets. BMW – originated in premium segments – is about to expand its luxury reach through its 7-series while, at the same time, serving the increasing demand for “affordable luxury” in all markets. However, competitors are catching up with new concepts. Whereas Mercedes-Benz always had a great proportion in the luxury segment, Audi became the market leader in China by launching several new luxury models. BMW sees the answer in the possible launch of a new 9-series sharing a platform with their Rolls-Royce cars. Furthermore, the BMW Individual manufactory launched a new, strictly limited 7-Series in corporation with silver manufacturer Robbe & Berking – the most expensive and exclusive car BMW ever crafted. To be able to win the race, BMW has to incorporate new technologies when considering the trading-up or trading-down of their model range.
SOM, A. (2017). BMW: Driving Luxury to China? ESSEC Business School.